PAPER UPDATE: Declining Demand, But Prices Firm

Direct mail catalogs, magazines, and newspapers will use less paper in 2019, but paper mills are fighting to lock in 2018 price hikes, Quad Graphics reports in its recent paper report.

So far in 2019, paper demand is down over 11%.

“Demand has dropped off for most paper grades, but producers are showing discipline thus far with regards to price pressures vs. mill downtime,” Quad reports. “The risk factor for paper prices will be if/when producers remove further production capacity rather than allow their price gains of 2018 to erode.”